Possible alliance of four major steel makers

With large-scale mergers and reorganization in the steel industry becoming an international trend, one of the world's largest, Pohang Iron & Steel Corp. (POSCO), may soon become a leader in the industry in East Asia through a mega-merger with foreign steel companies in China, Japan and Taiwan.

POSCO chairman Yoo Sang-Boo held an interview on Saturday in Tokyo and stated that Baosan Steel, the largest steel company in China, had contacted POSCO about engaging in mutual cooperation. He further revealed that POSCO had agreed to buying Baosan Steel shares when it goes public and is currently considering the size of the purchase.

He also suggested that an amicable relationship should be maintained with China Steel Company, the largest steel company in Taiwan, and hinted at the possibility of mutual cooperation.